Money Wellness has launched a free interactive Household Bills Calculator to help households prepare for significant increases in their monthly bills starting April 1, 2025. With estimates indicating households will see average bill increases of around £660 this coming year, the need for budgeting tools has never been more urgent.
The calculator allows users to input their current household expenses and receive personalized forecasts on upcoming price hikes across various categories, including energy, council tax, water, broadband, and mobile phone services, food, TV licenses, and car tax.
According to Sebrina McCullough, external director at Money Wellness, “With multiple household costs rising, having access to simple, practical financial tools is more important than ever. Our new interactive calculator makes it easy for people to understand exactly how these increases will affect their budget, allowing them to take proactive steps to stay on top of their finances.”
The launch of the calculator happens at a time when millions of UK households are grappling with high energy bills, increasing food prices, and mounting financial stress. With around 26 million households set to be affected by the energy price cap increase, which goes up by 6.4% next month, it is not surprising there is increasing concern about household finances.
The energy price cap will drive up costs by approximately £111 per year for households not under fixed-rate tariffs, leading to total bills of about £1,849—marking a 9.4% increase compared to the same period last year. These developments come at a time when water bills will also see unprecedented hikes, rising by 36% on average, adding £123 to the annual bill, with additional smaller spikes expected over the next five years.
Most councils are projected to increase their taxes by 4.99%, the maximum permitted, contributing to the overall financial burden. Even more troubling is the fact six councils—Bradford, Newham, Windsor and Maidenhead, Birmingham, Somerset, and Trafford—have acquired permission to raise their bills by as much as 10% to maintain basic services.
Adding to this strain are broadband and mobile price hikes, which will impact longstanding customers from April 1. While increases apply inconsistently across providers, on average, customers will face about 6.4% more after adjusting for inflation rates.
Further cost increases are anticipated, with TV licenses set to increase by £5 to £174.50 per year and car tax rising by £30 on average, depending on the vehicle. Food inflation, which was recorded at 2% as of January 2025, is forecasted to rise to 3.4% later this year. With average food prices more than doubling over the past three years, this translates to significant pressure for many households.
McCullough emphasized the extensive financial pressure these rises will put on families already struggling. “These rises will be real concern for millions of families already struggling, placing significant strain on household budgets. It’s important those in financial difficulty are aware there’s support available,” she stated.
Money Wellness is committed to providing accessible and practical support, ensuring families have the necessary information to make informed financial decisions. “We can help with creating a budget, finding suitable debt solutions, accessing grants, social tariffs, and support schemes, and making sure people are claiming all the financial assistance they’re entitled to,” McCullough explained.
Last year alone, Money Wellness aided over 330,000 individuals with approximately £4.3 billion of debt, indicating its impact during challenging economic times. The organization also performed nearly 21,000 benefit assessments, identifying £45 million in additional entitlements for customers facing financial hardship—averaging about £250 more per month for those eligible.
Those interested can access the new Household Bills Calculator free on the Money Wellness website at Money Wellness Cost of Living Calculator. This tool aims to help households gain insight and take action before increased costs dramatically impact their budgets.
For more information about the organization and its services, or to schedule interviews with Money Wellness representatives to gather firsthand accounts of the financial pressures households are under, journalists can reach out to Caroline Chell at [email protected] or via phone at 07814448564.
Money Wellness remains dedicated to supporting those experiencing financial difficulty and continues to play a key role as part of the Money and Pensions Service initiative, focused on providing free debt advice to those who need it most.